May 30, 2006 (PLANSPONSOR.com) - Retired workers
from two steel companies eventually found new health coverage
after their companies went bankrupt but many went without
coverage for sometime, according to a recent study.

The Kaiser Family Foundation surveyed 2,961 retirees or
spouses from Maryland, Pennsylvania, Indiana and Ohio who
lost their health benefits when Cleveland-based LTV
Corporation and Bethlehem Steel went bankrupt. About
200,000 retirees and their dependents lost health coverage
between 2002 and 2003, according to the study.

According to the survey, 29% of pre-65 respondents said
they postponed or went without needed hospital care because
of medical costs, and 49% postponed physician care due to
costs, according to the study. Twelve percent of
respondents aged 65 and over said they postponed or went
without needed hospital care, and 25 % postponed or went
without needed physician care.

Seventy-four percent of pre-65 respondents had health
coverage at the time of the survey, and the same percentage
of 65+ respondents had Medicare supplemental insurance or
were covered by a Medicare HMO at the time of the survey.
Thirty percent received coverage through a new job; 19% of
retirees received coverage through a spouse’s current or
former employer; 17% purchased a private insurance plan;
and 17% purchased COBRA continuation coverage, according to
the study.

The government also aided some respondents.

According to the study, 26% of respondents eligible
for Health Coverage Tax Credit – the age range is 55 to
64 — said they were using the credit, which is higher
than the 7% national rate. The federal tax credit pays
for 65% of health plan premiums for trade-impacted
workers, according to the Internal Revenue Service’s Web
site.

Bethlehem Steel went bankrupt in October 2001 and had
assured its pensioners that they would not lose their
benefits (SeeBethlehem Steel’s Retirees Face Uncertainty
). In March 2003, the company ended health benefits for
about 95,000 retirees and dependents, according to the
study.

LTV Corporation filed for bankruptcy in December
2000 and ended its health insurance benefits in March
2002. The company transferred its pension obligations to
the Pension Benefit Guaranty Corporation (See
PBGC To Pick Up LTC Pensions
).

The PBGC has also taken over the pension plans of
steel companies such asABC-NACO, Inc., and itssubsidiary, National Castings, Inc., which filed
for bankruptcy in October 2001. The plans were
underfunded by almost $12 million (See
PBGC Takes More Steel Plans
).

The foundation conducted the survey during 2004 but
published the results this month.